The investment gives Modern Water a 45 per cent share in AguaCure.
AguaCure technology removes dissolved and suspended contaminants from water while eliminating bacteria and viruses.
According to Modern Water, the process can be used in many applications including membrane pre-treatment, mine wastewater, metal finishing, and treating phosphate-contaminated water.
A large-scale system is currently operating successfully in the car manufacturing industry.
John Bostock, founder and chief executive officer of AguaCure, said: ‘We are delighted to link up with Modern Water and we are sure that working with its team and existing infrastructure, together with its market knowledge, will enable us to roll out our technology much more quickly and effectively both in the UK and internationally.
‘In addition, the investment gives us the time and opportunity to develop our other ideas to reclaim value from the waste streams that we are already treating, thus enhancing the environmental and commercial benefits.’